The Grand Lisboa casino may have been opened last Sunday in an effort to compete in the new Macau but later this year the first Las Vegas-style resort casino will test the temperature of the gambling water. The big question is whether the Chinese gambling market will take to resort casinos in sufficient numbers to support the huge expansion in hotel rooms and activities. The Venetian Macao, when it opens, should start to allow an assessment of Macau as the Asian Las Vegas.

Maybe it is a pity that Macau, which in 2005 was listed as a World Heritage Site, should be undergoing a complete revamp into another Las Vegas. With its historic centre being described as bearing unique testimony to the meeting of east and west in architecture, culture, aesthetics and technology, it is to be hoped that Macau will retain its individuality and not be entirely subjugated to the Las Vegas Sand’s vision of leading ‘a historic effort to create Asia’s Las Vegas’.

Macau may yet become the gambling capital of the world but it should do so with its own unique personality. Replica casinos with shopping malls and condominiums could detract from the city’s ability to attract the markets their future success depends upon. Convention business should become a mainstay of Macau’s Cotai Strip economy but to much of the world travelling distances to a Las Vegas look-alike may not appeal.

At present Macau makes its billions mostly from Chinese gamblers who so far show little inclination to be captivated by non-gambling activities. However, there is a great deal of money riding on the premise that this will change, and top hotel chains and top gaming operators seem prepared to take the gamble. The financiers are also positive and Wall Street is estimating that casino revenue will be between US$10 billion and US$15 billion by 2010.

William Weidner, COO of Las Vegas Sands, is even more optimistic. He suggests a figure of US$15 million plus. With Macau investments by the company of around US$11 billion, it is the sale of mall space and residential units that are expected to bring a healthy return. When the Venetian Macao opens it will be the first test of the resort casino concept in Macau, and other investors will be watching its effect closely. (E-02.13.07)

© Copyright 2007 CasinoCompendium



>>> return to archives
>>> return to frontpage